"The tax man's taken all my dough, and left me in my stately home lazing on a sunny afternoon".
Thus wrote the Kinks back in 1966. However, post-pandemic it appears that the taxman may take a more relaxed approach to payment of outstanding taxes from those with arrears and will be open to forbearance.
Provided a debtor engages with HMRC, it appears that the government steer is to avoid a heavy-handed approach. Insolvency will be a last resort only.
A boon for those who have struggled through the pandemic, but also a win for government if the expected spike in insolvencies post-pandemic can be avoided.
The exact approach that HMRC will take is being worked on, and will no doubt be pored over in great detail once it is published.
HMRC enforcement "during this critical period will be largely driven by a lack of engagement by companies with it, rather than just their inability to pay and that using insolvency to enforce payment will remain a last resort"
Originally published in Shoosmiths, on 24 June 2021
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